Saving and Saving and

Goal Goal SettingSetting

In This Lesson:In This Lesson:

1. Recognize the importance of goal-setting.

2. Define short term, medium term, and long-term goals.

3. Develop a SMART goal.4. Identify the opportunity cost of

saving.

Planning For Spring BreakPlanning For Spring BreakACTIVITY 6-12

months3

months10

days1 day

Research where you want to go        

Save money for trip        

Make a budget for your trip        

Purchase airline, bus or train tickets        

Make hotel reservations        

Take care of pets (or who is going to house sit)        

Pack your clothes        

Tell friends and family where you are going        

Request time off from work or school        

Clean out refrigerator        

Mow yard        

Plan activities for your vacation        

Types of GoalsTypes of Goals

Long Term Savings

goals- require 3 years or more to achieve.

Short Term Savings Goals-

can be achieved in fewer than

two months.

Medium Term Saving Goals- may take from 2 months to 3

years to achieve.

Why do you save money?Why do you save money?To purchase things you want.To purchase things you need.To pay bills.

Opportunity Cost ReviewOpportunity Cost ReviewBecause time, space and money

are limited. People can not have everything they want; they have to make choices.

Every choice involves an opportunity cost-the next best alternative.

Any decision that involves a choice between two or more options has an opportunity cost.

Activity #2: SMART GoalsActivity #2: SMART Goals

Specific

Measurable

Attainable

Realistic

Time Oriented

Activity #2: SMART GoalsActivity #2: SMART Goals

I am going to buy a car by December 2013 that costs $3,600 by saving $300 per month for 36 months.

My SMART Goal:

What we have learned….What we have learned….

1. How to recognize the importance of goal setting.

2. We defined short-term, medium term, and long-term goals.

3. Develop SMART goals.4. How to identify the opportunity

cost of saving.